Which Situation Is Most Likely to Exhibit Diminishing Marginal Returns

question 113

Multiple Choice

Which situation is most likely to exhibit diminishing marginal returns to labor?

• A)a factory that obtains a new machine for every new worker hired
• B)a factory that hires more workers and never increases the amount of machinery
• C)a factory that increases the amount of machinery and holds the number of workers constant
• D)None of these situations will result in diminishing marginal returns to labor.

---

Definitions:

Threats

Potential negative circumstances or events that could harm an organization, its operations, or assets.

Competitive Advantage

The unique attributes or capabilities that allow an organization to outperform its competitors.

Set Apart

means to distinguish oneself or something as different and superior in comparison to others.

Competition

The rivalry between businesses or individuals for market share, customers, or resources.